Michigan’s Blue Economy: Unlocking Freshwater Tech Potential for Small Businesses

Did you know that the Great Lakes hold 21% of the world’s freshwater, but constitute less than 1% of the global freshwater supply. The World Bank defines the blue economy as the sustainable use of ocean (and freshwater) resources for economic growth, improved livelihoods, and job creation, while preserving the health of the ecosystem. At the helm of the blue economy, Michigan is home to numerous university research facilities, a robust technology sector and the Michigan Small Business Development Center (Michigan SBDC) Tech Team prepared to support small businesses within this industry.

I’m Joe Carr, Freshwater Tech Business Consultant for the Michigan SBDC, and I am eager to contribute to the success of startups within Michigan’s freshwater technology ecosystem.

Michigan enjoys the most extensive freshwater shoreline of any state in the United States. Combined with nine research universities, Michigan is well-positioned to lead the blue tech economy, with research conducted in areas such as pollution detection, the maritime industry and intelligent water infrastructure.

The economic impact of Michigan’s blue economy is substantial. A white paper published by the Michigan Council of Foundations indicates that water-related industries contribute over 1 million jobs and $60 billion to our economy. 

Internationally, there is evidence of escalating water stress, with over 2 billion individuals lacking access to safely managed drinking water and 80% of wastewater discharged untreated, leading to water scarcity. This can have adverse effects on energy production and the manufacturing and mining industries, which are significant consumers of water. Freshwater also directly impacts agriculture and food supply.

 Small businesses play a pivotal role, often being the first to identify challenges and develop innovative solutions. Additionally, they serve as substantial employers both locally and regionally.

 Emerging technologies developed by Michigan universities and companies are being commercialized, including PFAS remediation, waste capture, EV water vessels and more. These technologies facilitate the removal of hazardous chemicals from water supplies, enable the capture of reusable or reduced waste, and enhance the accessibility and enjoyment of waterways.

 Freshwater technology startups encounter several challenges, however. Their products target a niche market, necessitating a lengthy sales cycle. The solutions are often physical products, requiring the startup to navigate the manufacturing process, which necessitates access to capital. Additionally, they may face regulatory and compliance challenges.

 As a startup founder, I have firsthand experience with these challenges. During my leadership of a 3D printing startup, I provided assistance to other water industry founders, offering low-cost prototyping options and manufacturing preparation support. We shared insights on available support programs and customer engagement strategies.

 The Michigan SBDC offers a range of services and programs to support startups and small businesses in Michigan’s blue economy. The Michigan SBDC Emerging Technology Fund supports startups in securing research grants to commercialize their products. The Growth Team assists established small businesses in expanding, fostering job creation and revenue growth in Michigan. 

As Freshwater Tech Business Consultant, I’m developing a comprehensive resource map that includes statewide resources, partners and funders. This resource map will provide new startups with streamlined access to essential support, enabling them to connect with the most appropriate resources to overcome challenges.

The Michigan SBDC’s Tech Team assists startups in preparing for investment, enhancing their competitiveness in pursuing SBIRs and federal research grants, and supporting the commercialization of their technology. We facilitate connections and collaborations with universities, private companies and other economic development entities. The Tech Team also provides services such as business model refinement, financial projections, guidance on intellectual property and regulatory pathways, and assistance with market entry strategies. And of course all Michigan SBDC services are provided at no cost.

Michigan is strategically positioned to lead the blue economy, particularly in freshwater innovation. This sector enables small businesses to flourish and contribute to a cleaner environment and a more robust economy. As water scarcity challenges persist, there is potential for the emergence of new job opportunities and increased investment. The preservation and protection of the Great Lakes will sustain the continued growth and prosperity of our communities.

Connect with the Michigan SBDC to explore how we can support your small business’s commencement or growth.